If a firm produces where its MR equals its MC,
a. TR is at a maximum, and TC is at a minimum
b. output is at a maximum
c. losses are at a maximum
d. profit is maximized or loss minimized
e. both TR and TC are at a maximum
D
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If you left $2,500 on deposit with a bank promising to pay you a 5 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $28,668 B. $11,467 C. $250,750 D. $2,625
A unit tax of $1 has been levied on a good. The equilibrium price of the good will most likely
A) increase by $1. B) remain unchanged. C) decrease by $1. D) increase by an amount less than $1.
We observe that the price of food rises and the quantity purchased also rises. This means the
a. supply curve shifted to the left. b. demand curve shifted to the right. c. demand curve shifted to the left. d. supply curve shifted to the right.
Consumer surplus
a. is the amount of a good that a consumer can buy at a price below equilibrium price. b. is the amount a consumer is willing to pay minus the amount the consumer actually pays. c. is the number of consumers who are excluded from a market because of scarcity. d. measures how much a seller values a good.